How will your Social Security stack up to the $4,194 Max? | Personal Finance – Community News
Social Security

How will your Social Security stack up to the $4,194 Max? | Personal Finance

By comparison, full-time workers had an average weekly wage of $1,001 in the third quarter of 2021, according to data from the U.S. Bureau of Labor Statistics. That works out to $52,052 per year.

Since 1983, only about 6% of workers have earned more than Social Security’s maximum taxable income in any given year. Few workers earn that much over 35 years. Therefore, your payments are unlikely to exceed the maximum, regardless of how long you work or defer benefits.

Why You May Not Want the Maximum Social Security Benefit?

You are highly unlikely to qualify for the maximum Social Security benefit. So the question really is, should you persist for the greatest possible benefit you could receive?

Delaying Social Security after age 62 to increase your benefits can be a smart move, especially if you enjoy working or are short on retirement savings. But many people cannot afford to make the most of it, as seniors are often forced out of the workforce earlier than they anticipated. There is also quality of life to consider. By taking a lower benefit earlier, you can enjoy your retirement years more.

You should also consider your life expectancy. You would have to turn 78 to get more out of Social Security by claiming at age 70 versus 62. Obviously none of us can predict when we will die, but the certainty that we will collect money sooner may be worth the unknowns associated with waiting longer.